Question 45-The unit cost of the Mk6 Chinook helicopter that will be available in 2015
Chinook Costs:
The approved budget for the Demonstration and Manufacture contract for the purchase of the 14 new Chinook aircraft is £841 million. This includes:
1. The prime contract with Boeing for:
(a) The non-recurring costs for development, test and evaluation
(b) The recurring production costs for the aircraft
(c) Initial spares provisioning
2. Third party contracts for additional items that are purchased separately by the MOD and then fitted to the aircraft by Boeing (eg Defensive Aids Systems) and to support the acquisition process (eg independent safety advice).
3. The project's management reserve and provision for the compound effect of inflation
The unit production cost for the aircraft is £34 million at 2011 economic conditions including engines and those items purchased by MOD outside the Boeing prime contract (of which £27 million is the recurring cost of each aircraft alone at 2011 economic conditions). These figures have, due to commercial sensitivities, been rounded to the nearest million pounds.
3 November 2011